The Australian dollar dipped today together with other growth-related currencies due to concerns about potential slowdown of economic expansion in China. Fears of slowing growth hurt the Aussie both directly and indirectly, pushing prices for commodities lower.
Prospects for slower growth in China bode ill for the Australian economy, as the Asian nation is the biggest importer of Australia’s goods. Additionally, prices for raw materials declined due to fears of lower demand from China. The Australian dollar is a commodity-related currency, and this means that falling prices for raw materials hurt the Aussie’s performance.
AUD/USD slid from 0.8928 to 0.8879 as of 10:39 GMT today, and its daily low of 0.8865 was the weakest rate since February 4. AUD/JPY declined from 97.33 to 96.81.
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